Fed's Powell downplays potential for a rate hike despite higher price pressures

Yet Powell, during a panel discussion in Amsterdam, said his confidence that inflation will cool “is not as high as it was” because price increases have been persistently hot in the first three months of this year. Powell stressed that the Fed 's preferred approach was to keep its benchmark rate at its current two-decade peak rather than increase it.

Financial markets and economists have been hoping for signs that one or two Fed rate cuts might be coming this year, given that inflation is down sharply from its high in 2022. But with price pressures still elevated, Powell and other Fed officials have signaled that no rate cut is likely anytime soon.. On Wednesday, the government will issue the latest monthly report on consumer inflation, which is expected to show that price growth cooled a bit last month.

Other economists point to consistent consumer spending on restaurant meals, travel and entertainment, categories where in some cases prices have also been elevated, possibly reflecting strong demand.Powell said that upcoming inflation reports will reveal whether such factors are keeping inflation elevated or whether inflation will soon fall back to the Fed’s 2% target, as he said he expects. Inflation, which peaked at 9.1% in the summer of 2022, is forecast to slow to 3.

Inflation falling further from here in the near term is a "pipe dream" and rate cuts will continue to be pushed out, Stifel strategists said.These high-yielding dividend stocks are perfect for investors looking for a deal, and who'll be paid to wait it out! The post Got $5,000? These 2 High-Yielding Dividend Stocks Are Trading Near Their 52-Week Lows appeared first on The Motley Fool Canada.

Source: Loan Digest (loandigest.net)

Price Increases Interest Rate Price Growth Fed Consumer Inflation Rate Hike Fed Officials

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US Fed's Powell expects inflation to fall, though not as confident as beforeExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Fed's Powell: 'We'll need to be patient' on ratesFed Chair Jerome Powell reiterated his stance that the central bank will need to remain patient and see further progress on inflation before reducing...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Powell Reiterates Fed Likely to Keep Rates Higher for LongerFederal Reserve Chair Jerome Powell said the US central bank needs to be patient as it awaits more evidence that high interest rates are curbing inflation, doubling-down on the need to keep borrowing costs elevated for longer.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Fed's Powell: PPI 'mixed,' next move unlikely to be a rate hikeExplore stories from Atlantic Canada.
Source: SaltWire Network - 🏆 45. / 63 Read more »

Futures lackluster with inflation data, Fed Chair Powell speech on tapProducer price index (PPI) for final demand is expected to have edged up 0.3% last month, according to economists polled by Reuters, after increasing by an...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Fed officials stick to Powell’s higher-for-longer script as a key inflation reading loomsJay Powell’s colleagues spent the last week backing a stance the central bank chair hammered home at his last press conference: Interest rates will be...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »